Amazon, the e-commerce firm, abandoned its plans for a new headquarters in New York that would have brought 25,000 jobs to the city.
The firm reversed its deal citing opposition from local leaders and activists who objected to the nearly US $ 3 billion in tax breaks promised to what is already one of the world’s most powerful companies.
The stunning move was a serious blow to Governor Andrew Cuomo and Mayor Bill de Blasio, who had lobbied intensely to land the project, competing against more than 200 metropolitan areas — including the Lehigh Valley, Philadelphia and Pittsburgh — across the continent.
The governor and the mayor had argued that Amazon would transform the Long Island City neighbourhood into a high-tech hub and spur economic growth.
“While polls show that 70 per cent of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project. We are disappointed to have reached this conclusion — we love New York, its incomparable dynamism, people and culture — and particularly the community of Long Island City, where we have gotten to know so many optimistic, forward-leaning community leaders, small business owners and residents,” Amazon said in a statement.
The New York neighbourhood of Long Island City had been one of the two locations Amazon selected last year after a long search for second headquarters. The company had planned to spend about US $ 2.5 billion building the New York office.
In its announcement, Amazon said it has 5,000 employees in the city and plans to increase that number.
